Corporate liability extends to officers and partners under GST, with a due diligence defence available against prosecution. Section 137 deems a company that commits an offence and every person in charge and responsible for the company's conduct of business to be guilty and ... Summary
Corporate liability extends to officers and partners under GST, with a due diligence defence available against prosecution.
Section 137 deems a company that commits an offence and every person in charge and responsible for the company's conduct of business to be guilty and liable to proceedings; officers who consented, connived, or whose negligence attributable to the offence are similarly liable. The provision applies mutatis mutandis to partners, members of LLPs, karta and managing trustees. A defence is available if the person proves the offence occurred without their knowledge or despite having exercised all due diligence to prevent it. "Company" includes firms and associations; "director" in relation to a firm means a partner.
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